Wal-Mart Stores Inc., the world’s largest retailer, said fourth-quarter profit will miss its forecast and predicted January revenue may be little changed as customers curb spending globally.
Sales from US stores open at least a year increased 1.7 percent last month, below analysts’ estimates. For January, revenue will be unchanged to 2 percent higher, the Bentonville, Ark.-based company said in a statement. Fourth-quarter profit from continuing operations will be 91 cents to 94 cents a share, down from a November projection of $1.03 to $1.07.
Wal-Mart dropped $4.16, or 7.5 percent, to $51.38 in New York Stock Exchange composite trading. An 18 percent gain last year made the company the best performer among the 30 members of the Dow Jones industrial average.
Sears Holdings Corp. said it expects fourth-quarter profit to beat analysts’ estimates and that it will end the fiscal year with some cash on hand and less inventory.
The news helped lift the retailer’s stock $9.43, or 23.3 percent, to close at $49.98. The stock is down 56 percent from its 52-week high of $114.
Aside from the upbeat forecast, Sears reported lower same-store sales for December as consumers curbed holiday spending amid the recession.
Macy’s Inc., Limited Brands Inc. and Gap Inc. were also among companies that lowered earnings forecasts today after rising unemployment and tightening credit led shoppers to rein in purchases.